Dropbox stock falls after Bloomberg reports data breach

Dropbox Inc (NASDAQ:DBX) shares experienced a 1.8% decline in after-hours trading on Tuesday following reports from Bloomberg that hackers breached thousands of user accounts and accessed data stored on the cloud-storage platform. Bloomberg cited a company statement indicating that about 5,000 Dropbox accounts were compromised by hackers last month, with hackers accessing files on less than a third of them.

The unauthorized access occurred between August 4 and August 21, as confirmed by notification emails sent to users on Monday. The hackers exploited a vulnerability in Lenovo Group Ltd’s email verification process, allowing them to register Lenovo IDs using Dropbox users' email addresses without authorization. Dropbox has notified regulators and affected users, and does not expect the breaches to have a material impact on its business.

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